Mindset The New Psychology Of Success In The Stock Markets

Mindset The New Psychology Of Success

Mindset: The New Psychology Of Success- Do or Die

Updated July 2022

The current correction is the only one since 2011 that is real, and it could prove to be a precursor to a more significant upward move. If you recall, in the dot.com era, the markets corrected firmly in 1998, it looked like the end was near, but then the NASDAQ had its best year ever in 1999. It had tacked on gains of roughly 100%.  The chart below highlights this dramatic reversal.

Stock Bull Market over; Mob Psychology disagrees

Mindset: The New Psychology Of Success: Focus On The Trend

Throughout this bull run, many reasons have been laid out to indicate why this bull should have ended years ago. Many of the reasons are valid, but being right does not equate to successful investing. The markets are not driven by logic; they are driven by emotion. One needs to understand the emotional state of the masses, and then one can plan a course of action. The masses are notorious for jumping in late and out too early. In both instances, their only gain is pain; in terms of money, they lose on both sides of the equation.  Be wary when the masses are joyous and happy when they are worried. The trend is your friend, and everything else is your foe.

Game Plan

The Fed is on a “mission to speculate” the end game here is to force as many people as possible to speculate in the markets. How will they achieve this? The mechanism being used is “negative interest rates”. We have moved into the next stage of the currency war games, the era of negative interest rates.  Negative rates will eventually force the most conservative of players to take their money out of the banks and speculate.  This process will resemble another massive stimulus and provide the bedrock for another monstrous rally.

Make a list of stocks you would like to own and use strong pullbacks to add to or open new positions in blue-chip companies or companies with strong growth rates. Some examples are OA, AMZN, BABA, GOOG, RTN, CHL, etc.

Mindset: The New Psychology Of Success Video

Stock Market Update Oct 2019

APPL is also putting in a fascinating and bullish pattern, which also bodes well for this market, as this stock was a laggard. The canary in the mine could be signalling that the markets might be overreacting to all the negative news.

Copper continues to put in a bullish pattern. Once the MACDs on the monthly charts experience a bullish crossover, the markets will get a boost as copper is a leading economic indicator.   Copper Stocks are expected to outperform the market over the next 6-9 months.

The Dow utilities surged to new highs in September. According to the Tactical Investor alternative Dow Theory, it is an early indicator that the Dow industrials and Dow Transports will follow suit.

Everyone is jumping onto the negativity bandwagon, as seen by the enormous amounts of money leaving the markets. Therefore the only plausible outcome is that the crowd (as always) will get hammered.

Lastly, the market is putting in a pattern that is dangerously akin to 2009, especially in the sentiment arena. We all know what happened after that.

Stock Market Outlook March 2020

It appears that markets are experiencing the “backbreaking correction” one which every bull market experiences at least once and is often mistaken for the end of the bull.  In today’s manipulated markets, one cannot tell which correction will morph into a backbreaking correction, as free-market forces have almost been eliminated from today’s markets.  While it feels like the end of the world, such corrections always end with a massive reversal.  Given the current overreaction to the coronavirus, there is now a 70% probability that when the Dow bottoms and reverses course; it could tack on 2200 to 3600 points within ten days. Interim update March 9, 2020

To put things into perspective, consider this: If cancer were a virus, it would be one of the most lethal viruses of all time, yet no one blinks that we lose 9.6 million people a year to this insidious disease. Until mass-scale testing is underway and the data is broken down into categories such as age group and other pre-existing conditions, all the massive death projections experts are issuing amount to faulty science.

It appears that the only course of action on the table is to give in to panic and flee for the heels. Well, that’s true if you are part of the herd; such action brings short-term relief at the expense of significant gains for the long-term player. Nobody knows the inner workings of a company better than the insiders, and these chaps are doing something that can only be described as unprecedented, further confirming that this sell-off represents opportunity instead of a disaster. We will finish tabulating the latest batch of sentiment data tomorrow, and another update will be sent within 48 hours, if not sooner.



These articles demonstrate the value of having the right mindset when it comes to investing:

  1. “The Importance of a Winning Mindset in the Stock Market”: https://www.thebalance.com/the-importance-of-a-winning-mindset-in-the-stock-market-4169941
  2. “How Your Mindset Can Sabotage Your Stock Market Success”: https://www.investopedia.com/articles/investing/120115/how-your-mindset-can-sabotage-your-stock-market-success.asp
  3. “The Psychology of Successful Trading”: https://www.forbes.com/sites/moneybuilder/2013/06/19/the-psychology-of-successful-trading/?sh=43a6cd3e6e97
  4. “Mindset Matters: Mastering the Mental Game of Trading”: https://www.nasdaq.com/articles/mindset-matters%3A-mastering-the-mental-game-of-trading-2017-05-12
  5. “The Psychology of Trading: How to Conquer Your Emotions”: https://www.thestreet.com/personal-finance/the-psychology-of-trading-how-to-conquer-your-emotions-12944274

Other articles of Interest:

The Changing Seasons of Good Stocks: The Evolving Market

The Changing Seasons of Good Stocks: The Evolving Market

Start Strong with Trend Leaders: Unveiling the Secrets of Good Stocks Updated May 2023 Contrary to the popular belief that ...

AMD vs Intel: Who Will Dominate the Landscape going forward

AMD vs Intel: Who Will Dominate the Future of Chip Technology? Updated may 2023 The battle for supremacy in the ...
trading psychology, focus on the facts not rubbish

Trading Psychology: The Trend Is Your Friend

Trading Psychology; Focus on Facts, Not Fiction Updated May 2023 Information overkill is why we won’t inundate your inbox with ...
Mass Hysteria: A Deep Dive into the Phenomenon

Mass Hysteria: A Deep Dive into the Phenomenon

   Exploring the Phenomenon of Mass Hysteria Updated Feb 29, 2024 Introduction to Mass Hysteria Mass hysteria is a complex ...
Technical analysis indicators

Technical analysis indicators: Change is in the Air

Deciphering the Value of Technical Analysis Indicators: Useful or Useless? Updated May 2023 Technical analysis indicators are not foolproof and ...
market psychology books

The Ultimate Guide to Market Psychology Books

May 10, 2023 Do you want to learn how the stock market works in detail? Or do you want to ...
Stock market crash 2020 predictions. full of hype

Stock Market Crash 2020 Predictions: A Tale of Market Resilience

Stock market crash 2020 Predictions & Mass Insanity Updated April  2023  The image of the V-indicator illustrates just how severe ...
Long term investments

Securing Your Future: The Power of Long-Term Investments

The Pros and Cons of Long-Term Investing: Building Wealth Over Time April 27, 2023 For many investors, the stock market ...
Disciplined Growth Investors: Embrace Discipline for Maximum Gains

Disciplined Growth Investors: No Discipline, No Gains

Disciplined Growth Investors Don’t Make Bearish Beats 21 Apr, 2023 Disciplined growth investors focus on long-term growth in their investments ...
Dow Jones Global Index: A Timeless Symphony of Global Markets

Mastering the Trading Game with the Global Dow Jones Index

Dow Jones Global Index: A Timeless Symphony of Global Markets Apr 19, 2023 The Dow Jones Global Index is an ...
The US Dollar Index Chart: Ready To Top

US Dollar Index Chart: Bullish Signals for Prolonged Uptrend

US Dollar Index Chart Poised for a Resounding Surge Updated April 15, 2024 Every target we projected for the dollar ...
Panic Buying

Panic Buying Equates to Fools Paradise

Panic Buying & Losses: Best bed Partners Updated  April  2023  Panic buying can be contrasted with panic selling, in which ...
Losing Money in the Market

Losing Money in the Market: Strategies to Minimize the Risk

Embracing a Contrarian Approach to Minimize the Risk of Losing Money in the Market April 14, 2023 Losing money in ...
Why Is Inflation Bad for the Economy?

Why Is Inflation Bad for the Economy? Demystifying the Menace

Why Is Inflation Bad for the Economy? Apr 14, 2023 Inflation is a complex economic phenomenon that is often difficult ...

The Dow Jones Industrial Average Expected To Trend Higher

Updated April 2023 The Dow Jones Industrial Average The markets are not free; corrections end at arbitrary points. In other ...